We introduce a model of two-sided statistical discrimination in which worker and firm beliefs are complementary. Firms try to infer whether workers have made investments required for them to be productive, and simultaneously, workers try to deduce whether firms have made investments necessary...

Civic ("sociotropic") concerns are a main source of public opposition to immigration. Yet whether such concerns stem from ethnic biases remains contested because research consistently focuses on native attitudes toward outgroup members. This lack of variation in intergroup relations limits...